Third

Session, 48th General Assembly

Elizabeth II, 2019

BILL 52

AN ACT RESPECTING STUDENT

FINANCIAL ASSISTANCE

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE BERNARD

DAVIS

Minister of

Advanced Education, Skills and Labour

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would repeal and replace

the Student Financial Assistance Act .

The Bill would repeal provisions

respecting the Student Loan Corporation and implement the transfer of the

student loan program to the Department of Advanced Education, Skills and Labour

and the Department of Finance.

A BILL

AN ACT RESPECTING STUDENT FINANCIAL

ASSISTANCE

Analysis

Short title

Definitions

PART

ADMINISTRATION

Educational institutions

Agreements

Agent

Financial Institution

Notice of financial assistance

Financial assistance

Crown successor

No right to payments

Over award

Appeal board

Appeal

PART

REGULATIONS

Ministerial regulations

Lieutenant-Governor in Council

regulations

Procedures, fees and forms

PART

III

REPAYMENT OF STUDENT LOANS AND REMEDIES

Liability of minors

Financial assistance not chargeable etc.

Subrogation and collection

No notice

Consequences of breach

Offence and penalty

Report

Immunity

Application

NLR 74/10 Amdt.

SNL2002 cI-0.1 Amdt.

SNL2000 cI-1.1 Amdt.

RSNL1990 cP-25 Amdt.

CNLR 1114/96 Amdt.

RSNL1990 cP-43 Amdt.

Repeal

Commencement

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

Short title

1. This

Act may be cited as the Student Financial

Assistance Act, 2019.

Definitions

2. In

this Act

(a) "appeal board" means the appeal

board established under

section 12;

(b) "borrower" means a person to whom

financial assistance is given under this Act;

(c) "department" means the department

presided over by the minister;

(d) "educational institution" means an

institution of learning, whether within or outside the province, that offers

courses at a post-secondary level and that is designated under

section 3;

(e) "federal Act" means the Canada Student Financial Assistance Act

(Canada);

(f) "financial assistance" means a

student loan or other form of assistance that has been or may be provided to a

student under this Act or the Student

Financial Assistance Act in force before the coming into force of this Act;

(g) "financial institution" means

(

i) a bank to which the Bank Act ( Canada )

applies,

(ii) a credit union incorporated or continued under

the Credit Union Act , and

(iii) those other persons that are designated by the

minister;

(h) "former Act" means the Student Financial Assistance Act ;

(i) "lender" means the Crown or a

financial institution from which a borrower receives a student loan in

accordance with a student loan agreement;

(j) "minister" means the minister

appointed under the Executive Council Act

to administer this Act;

(k) "qualifying student" means a person

who

(

i) is a Canadian citizen or a permanent resident

within the meaning of the Immigration Act

( Canada ) ,

(ii) is a resident of the province, and

(iii) is qualified for enrolment or is enrolled at

an educational institution;

(l) "reserve force" means reserve force

as defined in the National Defence Act

(Canada);

(m) "student loan" means money loaned to

a borrower under this Act or under the Newfoundland and Labrador Student Loan

Program, operating on or after September 1, 1994 in accordance with a student

loan agreement between a lender and that borrower; and

(n) "student loan agreement" means an

agreement between a lender and a borrower for the receipt of a student loan by

the borrower in accordance with this Act or under the Newfoundland and Labrador

Student Loan Program, operating on or after September 1, 1994.

PART I

ADMINISTRATION

Educational

institutions

(1) A

person may apply to the minister to have an institution of learning designated

as an educational institution.

(2) Where an application is made under subsection

(1), and the applicant meets the requirements established by the

Lieutenant-Governor in Council under the regulations, the minister may designate

the institution of learning as an educational institution.

Agreements

(1) The

minister may, in order to carry out the purposes of this Act, enter into and

amend agreements with the government, or an agency of the government, of

another province, territory and of Canada and with a person or a private agency

or organization with respect to

(

a) the exchange of information and records

related to student financial assistance;

(

b) the joint undertaking of projects;

(

c) payment to or by the province of contributions

in respect of the cost of projects referred to in paragraph (b);

(

d) the harmonization and administration of

federal, provincial and territorial financial assistance programs; and

(

e) the promotion of the purposes of this Act.

(2) The minister may, with the approval of the

Lieutenant-Governor in Council, enter into and amend an agreement with a lender

with respect to the making of student loans and the provision of other forms of

financial assistance.

Agent

5. The

to act on behalf of the government of the province for the purposes of this

Act.

Financial Institution

6. The

minister may, in writing, designate the financial institutions that may be

lenders under this Act.

Notice of

financial assistance

(1) A

qualifying student may, in the form required by the minister, apply to the minister

for financial assistance.

(2) The minister may issue a notice of financial

assistance to a qualifying student who applies under subsection (1) provided

that the student complies with and meets the requirements established by the

regulations.

(3) A notice of financial assistance shall state

the social insurance number of the qualifying student and the maximum amount of

financial assistance that may be given to that student.

(4) The maximum amount of financial assistance

referred to in subsection (3) shall be set in accordance with the regulations.

Financial assistance

(1) The

minister shall, in accordance with this Act, provide financial assistance to a

qualifying student in an amount that shall not exceed the amount set out in the

regulations.

(2) The minister may, in accordance with the

regulations, credit or debit a borrower's account with the Crown.

(3) The minister may pay all or a portion of

financial assistance provided under subsection (1) on behalf of a student to

the educational institution attended by the student and the receipt of that

educational institution for the payment made is a sufficient discharge to the minister

for the amount set out in that receipt with respect to that student's financial

assistance.

Crown successor

(1) The

Crown is the successor in law to the Student Loan Corporation and,

notwithstanding the repeal of the former Act, has all the power which the

Student Loan Corporation had under that Act with respect to the administration

of student financial assistance before the coming into force of this Act.

(2) The Crown is charged with and assumes all the

obligations and liabilities of the Student Loan Corporation.

(3) Title to all of the property and assets of

the Student Loan Corporation is vested in the Crown.

(4) An agreement made between the Student

Loan Corporation and another party before this Act comes into force continues

in force and is binding on the Crown and the other party to it.

No right to payments

10. A

person is not entitled as a matter of right to receive, obtain or have paid on

account of or in respect of that person an amount of money authorized under

this Act.

Over award

(1) Where,

under this Act, a person receives or obtains an amount of money to which he or

she is not entitled or an amount of money in excess of the sum to which he or

she is entitled, that amount shall be recovered in the manner required by

regulation.

(2) Subsection (1) applies notwithstanding that a

person has been or will be prosecuted for an offence arising out of his or her

receipt of money as described in subsection (1).

Appeal board

(1) The

minister shall, in accordance with the regulations, appoint a panel of persons

to act as a student assistance appeal board.

(2) The appeal board may be divided into one or

more committees.

Appeal

(1) A

person may make an appeal to the appeal board with respect to a denial, term, condition,

amount of a student loan, financial assistance, interest or payment relief made

or established under this Act.

(2) An appeal made under subsection (1) shall be

made in accordance with the regulations.

(3) The appeal board or a committee of the appeal

board shall, in writing and not more than 10 days after the hearing and

consideration of an appeal, notify the appellant of its decision and the

reasons for that decision.

(4) A decision of a committee of the appeal board

and of the appeal board on an appeal is final and binding.

PART II

REGULATIONS

Ministerial regulations

(1) The

minister may make regulations

(

a) defining, for the purpose of this Act, a word

or term not defined in this Act;

(

b) respecting the assessment of need for financial

assistance under this Act;

(

c) respecting the disclosure of financial and

other information, reports and documentation for the purpose of this Act;

(

d) respecting the payment by borrowers of fees,

costs, insurance premiums and insurance coverage, expenses and disbursements,

legal or otherwise, incurred by a lender or the Crown in endeavouring to

recover student loans made to a borrower under this Act;

(

e) respecting qualifying students, full time

students, assessments of need and requirements for receiving financial assistance;

(

f) respecting the recovery of student loans,

awards and grants given in error or in excess of an amount permissible under

this Act including the circumstances under which all or part of a grant is to

be converted into a student loan;

(

g) respecting the composition of a panel of

persons to the appeal board, committees of, chairperson of, appeals to, administration

and procedures of the appeal board, terms of office and vacancies on the appeal

board;

(

h) respecting the information to be provided by

students, qualifying students and borrowers with respect to their obtaining

financial assistance;

(

i) respecting applications for student loans and

other financial assistance;

(

j) respecting the administration of grant,

student loan, debt reduction, relief and remission programs and respecting the

persons or classes of persons who are eligible for a grant, loan, debt

reduction, relief or remission program;

(

k) adopting provisions of the federal Act and

regulations made under that Act; and

(

l) respecting evidence to be provided and oaths

or affirmations to be made for the purpose of the Act.

(2) Regulations made under this

section may be

made with retroactive effect.

Lieutenant-Governor

in Council regulations

(1) The

Lieutenant-Governor in Council may make regulations

(

a) prescribing requirements for the designation

of educational institutions and the standards and requirements necessary to

maintain that designation;

(

b) prescribing circumstances and conditions under

which a designation as an educational institution may be revoked and reinstated;

(

c) respecting the manner of calculation, total

amount and payment of student loans and other financial assistance;

which a student loan or other financial assistance may be provided and the

(

e) respecting interest free periods, payment

deferrals for student loans, student loan forgiveness and remission, debt reduction,

grant programs, interest relief and debt relief relating to death or

disability;

(

f) setting lower interest rates or eliminating

interest for student loan agreements and setting the effective dates for those

lowered interest rates or eliminated interest, except where a judgment of the

court has been made with respect to a student loan agreement;

(

g) setting lower interest rates or eliminating

interest for debts owed to the Crown as a result of the Crown fulfilling the obligations

of a borrower under a student loan agreement, and setting the effective dates

for those lowered interest rates or eliminated interest, excepting debts that

are owed to the Crown as a result of a judgment of a court;

(

h) respecting the circumstances in which no

interest is payable by members of the reserve force in respect of their student

loans;

(

i) respecting the circumstances in which no fees

may be charged to members of the reserve force on their student loans;

(

j) respecting the circumstances in which no

amount on account of principal or interest is required to be paid by members of

the reserve force in respect of their student loans;

(

k) respecting the assignment, transfer or sale of

student loans;

(

l) adopting provisions of the federal Act and

regulations made under that Act and respecting the application of those provisions;

(

m) determining the period during which financial

assistance is to be provided;

(

n) determining who are borrowers for the purposes

of this Act;

(

o) respecting interest rates, amortization and

repayment of student loans and other financial assistance;

(

p) respecting set off, write-offs, over awards

and the recovery of money owed to the Crown;

(

q) respecting the terms of repayment of student

loans under student loan agreements;

(

r) generally to give effect to the purpose of

this Act.

(2) Regulations made under this

section may

establish different requirements for different classes of student loan

agreements and lenders.

(3) Regulations made under this

section may be

made with retroactive effect.

(4) Regulations made under this

section may confer

powers or impose duties on the minister with respect to matters dealt with in

those regulations.

(5) An interest rate lowered or interest

eliminated in accordance with regulations made under paragraphs (1)(

f) and (

g) applies to a student loan agreement or a debt owed to the Crown as a result of

the Crown fulfilling the obligations of a borrower under a student loan

agreement notwithstanding that that lowered interest rate or eliminated

interest is contrary to a term or condition of the applicable student loan

agreement.

Procedures, fees

and forms

(1) The

minister may establish policies and procedures for the purpose of the

administration and implementation of this Act and regulations.

(2) The minister may set fees and establish forms

for the purpose and administration of this Act.

PART III

REPAYMENT OF STUDENT LOANS AND REMEDIES

Liability of

minors

(1) A

qualifying student under 19 years of age at the time of entering into a student

loan agreement is bound by that agreement, and this Act applies as if he or she

had attained the age of majority at the time when the contractual liability

under that agreement arose.

(2) Subsection (1) applies to a student loan

agreement notwithstanding that the agreement was entered into with a lender

before the coming into force of this Act.

Financial

assistance not chargeable etc.

(1) Money

that is financial assistance paid or payable under this Act shall not be

charged, attached, anticipated or given as security and is exempt from

execution, seizure or attachment and a transaction purporting to assign,

charge, attach, anticipate or give as security such financial assistance is

void, except where this

section is overridden by a provision of another Act.

(2) A notice of garnishment received by the Crown

with respect to money received by the Crown to repay a student loan is void.

Subrogation and

collection

(1) Where

the Crown has paid money to a lender to fulfil the obligations of a borrower

under a student loan, the Crown has the same right to collect from the borrower

the amount paid to the lender and interest that the lender would have had if

the Crown had not made that payment.

(2) Money owed to the Crown under an agreement,

including a student loan agreement, by subrogation or otherwise under this Act,

may be collected as a civil debt owed to the Crown.

(3) Where a student loan is assigned to the Crown

by a lender, the Crown has the right to collect from the borrower of that

student loan the total amount required to be paid by the borrower under the

terms of the student loan agreement, as amended by this Act, notwithstanding a

payment made by the Crown under an agreement with that lender.

(4) Notwithstanding a provision of another Act,

where a borrower is

(

a) in default of a student loan owed to the Crown;

(

b) indebted to the Crown with respect to a

payment under subsection (1),

the Minister of Finance may recover the

amount owed by the borrower from a refund or repayment that may otherwise be

made under the Income Tax Act ( Canada )

or under the Income Tax Act, 2000 .

(5) In a proceeding in a court for the recovery of

money owed to the Crown arising out of an agreement or otherwise under this

Act, a copy of the account stating the amount owed to the Crown may be signed

and certified by the minister and where signed and certified is, in the absence

of evidence to the contrary, evidence of the amount due and payable without

further proof that that money is owed and without proof of the signature and

certification of the minister.

(6) This

section applies to payments of the Crown

to a lender with respect to a student loan obligation incurred by a borrower

whether that obligation arose before or after the coming into force of this Act.

(7) This Act shall not affect a remedy of the Crown

that is available under another Act or law of the province for the recovery of

or enforcement of a payment of money.

No notice

20. For

the purpose of the assignment of a borrower's student loan from a financial

institution to the Crown, the notice requirement of paragraph 103(1)(

b) of the Judicature Act shall be considered to be

satisfied notwithstanding that express written notice has not been given to the

borrower, trustee or other person from whom the assignee is entitled to receive

or claim the student loan debt.

Consequences of

breach

(1) Where

a person is convicted of an offence under this Act, the Canada Student Loans Act ( Canada ) or the federal Act,

(

a) no financial assistance is payable to that

person or to his or her benefit on or after the date of conviction; and

(

b) the minister may demand that the person repay

to the Crown financial assistance including interest and interest subsidies

paid to or for the benefit of the person.

(2) Where the minister determines that a person

has contravened this Act, breached a term of an agreement entered into by the

person or provided false or misleading information with respect to obtaining financial

assistance,

(

a) the minister may, in accordance with the

regulations, demand payment of all or a part of financial assistance made to

that person; and

(

b) where payment is demanded under paragraph (a),

the financial assistance or a part of it is due and payable, together with

interest on any outstanding balance of a student loan.

(3) This

section does not affect the validity or

enforceability of a guarantee provided to a financial institution.

Offence and

penalty

(1) A

person who, either orally or in writing, makes a false statement or

misrepresentation or gives false or misleading information for the purpose of

obtaining financial assistance under this Act or assisting another person in

obtaining financial assistance under this Act commits an offence.

(2) A person who contravenes this Act commits an

offence.

(3) A person who commits an offence under this Act

is liable on

summary conviction to a fine of not less than $500 and not more

than $5,000, and for a subsequent offence to a fine of not less than $1,000 and

not more than $10,000.

(4) A person who is convicted of an offence under

this Act shall not apply for and is not eligible to receive financial

assistance under this Act.

(5) Notwithstanding subsection (4), and not less

than 3 years after a person has been convicted of an offence under this Act,

the minister may, where he or she considers it appropriate, determine that the

person may apply for and be granted financial assistance.

Report

(1) The

minister shall annually prepare a report on the administration of this Act for

the preceding academic year and shall table that report before the House of

Assembly within 30 days of the completion of the report and if the House of

Assembly is not sitting, within 30 days of the commencement of the next

sitting.

(2) In addition to a report under subsection (1),

the minister may prepare and make public a report on the administration of this

Act that may include student financial assistance default rates and write-offs

generally and with respect to specific programs and educational institutions.

(3) For the purpose of subsection (1),

"academic year" means a year commencing on August 1 of a year and

ending on July 31 of the following year.

Immunity

24. An

action shall not lie or be instituted against an employee of the department, a

member of the appeal board, the Crown or another person authorized to fulfil a

responsibility under this Act for a loss or damage suffered by a person in

respect of

an act done or omitted to be done pursuant to or in the exercise or

supposed exercise of a power, function or duty conferred or imposed under this

Act.

Application

25. This

Act applies to a student loan agreement and to a student loan made before the

coming into force of this Act as if that agreement or loan were made under this

Act.

NLR 74/10 Amdt.

26. Paragraph 8(

c) of the Cost of Consumer Credit Disclosure Regulations published under the Consumer Protection and Business Practices

Act is amended by deleting the reference " Student Financial Assistance Act " and substituting the

reference " Student Financial Assistance

Act, 2019 ".

SNL2002 cI-0.1

Amdt.

27. Subsection 7(3.1) of the Income and Employment Support Act is repealed.

SNL2000 cI-1.1

Amdt.

28. Subsection 16.1(1) of the Income Tax Act, 2000 is amended by

deleting the reference " Student

Financial Assistance Act " and substituting the reference " Student Financial Assistance Act, 2019 ".

RSNL1990 cP-25

Amdt.

29. Paragraph 19(1)(

u) of the Private Training Institutions Act is amended by deleting the reference

" Student Assistance Act "

and substituting the reference " Student

Financial Assistance Act, 2019 ".

CNLR 1114/96

Amdt.

Section 26.5 of the Private Training Institutions Regulations published under the Private Training Institutions Act is amended

by deleting the reference " Student

Assistance Act " and substituting the reference " Student Financial Assistance Act, 2019 ".

RSNL1990 cP-43

Amdt.

Schedule C of the Public Service Commission Act is amended by deleting the reference

" Student Financial Assistance Act , Student Financial Assistance Administration

Regulations , paragraphs 18(1)(

b) and (e)" and substituting the

reference " Student Financial

Assistance Act, 2019 , Student

Financial Assistance Administration Regulations , paragraphs 18(1)(

b) and

(e)".

Repeal

(1) The Student Financial Assistance

Act is repealed.

(2) The

Student Financial Assistance Board of

Directors Regulations are repealed.

Commencement

33. This Act comes into force on August 1,

Queen's Printer